5 Oil Stocks That Could Continue to Slide on U.S. Rate Hike Hints

SmallCapPower | March 28, 2016: The U.S. Federal Reserve has indicated its support for higher interest rates as soon as the economic data warrants. This bullish tone has pushed the U.S. dollar higher, and has several implications for oil stocks, as U.S. denominated commodities (such as oil) see potential drawbacks. A rate hike would also weigh heavily on highly-indebted companies, such as the ones on our list today, with stock prices that have been falling lately as oil hovers just below $40/bbl.

Exxon Mobil Corp. (NYSE: XOM) – $83.98
Oil & Gas Refining and Marketing

Exxon Mobil Corporation is an energy company that is engaged in the exploration and production of crude oil and natural gas. The Company is involved in the manufacturing of petroleum products, and transportation and sale of crude oil, natural gas and petroleum products. Exxon also manufactures and markets petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and a variety of specialty products.

• Market Cap: $1,790,728,391
• Operating Income (LTM, mm): $12,883
• Debt (LFQ, mm): $38,687
• WTD Price Change: -0.5%

Chevron Corp. (NYSE: CVX) – $94.85
Oil & Gas Refining and Marketing

Chevron Corporation (Chevron) manages its investments in subsidiaries and affiliates. The Company operates through two segments: Upstream and Downstream. Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas (LNG); transporting crude oil through international oil export pipelines; transporting, storing and marketing natural gas, and operating a gas-to-liquids plant. The Company’s Downstream operations primarily consist of refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products by pipeline, marine vessel, motor equipment and rail car, and manufacturing and marketing commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives.

• Market Cap: $176,245
• Operating Income (LTM, mm): -$86
• Debt (LFQ, mm): $38,592
• WTD Price Change: -4.2%

ConocoPhillips (NYSE: COP) – $40.04
Oil & Gas Exploration and Production

ConocoPhillips (ConocoPhillips) is an independent exploration and production company that explores for, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids. The Company operates through six operating segments, which are primarily defined by geographic region: Alaska, Lower 48, Canada, Europe, Asia Pacific and Middle East, and Other International.

• Market Cap: $49,263
• Operating Income (LTM, mm): -$7,126
• Debt (LFQ, mm): $24,880
• WTD Price Change: -7.4%

Anadarko Petroleum Corp. (NYSE: APC) – $46.27
Oil & Gas Exploration and Production

Anadarko Petroleum Corporation is an independent exploration and production company that is engaged in the exploration, development, production, and marketing of natural gas, oil, condensate, natural gas liquids (NGLs), and anticipated production of liquefied natural gas (LNG). Its assets include United States onshore resource plays in the Rocky Mountains area, the southern United States, the Appalachian basin, and Alaska. The Company has three segments: Oil and gas exploration and production, Midstream and Marketing.

• Market Cap: $23,885
• Operating Income (LTM, mm): -$8,809
• Debt (LFQ, mm): $15,751
• WTD Price Change: -5.1%

Devon Energy Corp. (NYSE: DVN) – $26.47
Oil & Gas Exploration and Production

Devon Energy Corporation (Devon) is an independent energy company engaged in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs). The Company’s operations are concentrated in various North American onshore areas in the United States and Canada. Devon has approximately 689 Million Barrels of Oil Equivalent (MMBoe) of proved undeveloped reserves. The Company operates through three segments: U.S., Canada and EnLink. The Company’s projects in North America include Anadarko Basin, Barnett Shale, Mississippian-Woodford Trend, Permian Basin, Rockies and Canadian Heavy Oil.

• Market Cap (mm): $13,495
• Operating Income (LTM, mm): -$20,727
• Debt (LFQ, mm): $13,113
• WTD Price Change: -6.5%

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